Dishonest Mortgage Companies

[buffs94]

What is the name of your state? CO

Remember, there is no such thing as "no closing costs" loans. They simply do not exist! These are dishonest bait-and-switch lenders and you should run fast from them. They will make their money off of you by charging hidden fees and higher interest rates. Always ask questions.

Some lenders may charge 4,5 or 6 percentage points on a loan. Run, run, run from these guys. Always ask questions. Never pay more than $600 for a broker fee either.

Good luck

[nextwife]

Not necessarily so. While indeed some are loans in which the APR is not the rate discussed by the mortgage broker, and the payment rate is what really is quoted, I am aware of a number of true, no closing cost programs, mostly through large bank systems trolling for customers of other services.

For example, one large local very reputable bank system here has a no closing cost, portfolio loan that is a ten year term. APR is presently about 5.25%. It may be amortized over thirty, twenty or ten, however, with a balloon payment at the end ten (although many using this program expect to be selling long before the 10 years are up). It requires no appraisal and is ONLY available if the LTV will not exceed 70% of assessed value and the credit is decent. The bank eats the credit report and their own processing cost. And they close it, so no outside fee for closing services is generated.

One must always be proactive and evaluate ALL terms and verify all costs and exactly what the APR really is.

[buffs94]

Thanks for pointing that out. I am a mortgage broker with a very reputable company. I am an honest person and am tired of other dishonest companies giving us a bad name. I encourage everybody to check out every fee and comparison shop.

[JETX]

Come on.... don't tell me that Ditech would lie to people!!!

[HomeGuru]

And they are never never predatory in nature.